||This work focuses on the issues related to the measurement of the quality of institutions using the indicators of the World Bank called Worldwide Governance Indicators. By assuming that better institutional environment leads to higher economic growth, we get to the point where it is necessary to measure the performance of an economy and then compare it to other economies. We are looking at the advantages and disadvantages of these indicators and also at their construction. The second part of this work is more practical. We use the WGI to measure the governance in the countries recently joining the European Union – the EU-12 and compare the results with the level of governance in the rest of the EU. We also construct our own model measuring the state of economic environment and judge the obtained scores against the previous results. These findings should help us understand different aspects of institutional quality of the new members of the EU.